Weekly Market Recap:
It’s rare when the end of the week, month and year all occur on the same day for the market. When I look at the year 2017 from January to December, I found wow!! What a phenomenal and effervescent rally market had. It was the rarest of rare year, when the market in February conventionally became expensive on valuations and continued to be over-expensive until end of the year and concluded at the summit without having a significant correction.
In this year, Sensex spectacularly gained 7430 points or 27.9% and Nifty50 prominently gained 2345 points or 28.64%. In this week, in a bid to adieu year 2017 both indices Sensex and Nifty added 116 and 37 points, and closed at 34056.83 & 10530.7 respectively.
Sectors like auto, NBFC, private banks, FMCG, Engineering and reality were the divers of the market, while IT and pharma appeared to be on back foot or laggard on yearly basis.
Current Outlook:
I found prominent indicators like VIX, market breadth, RSI and MACD to be in position which indicates further upside in the market, however rise in crude oil prices could be cause of concern and may act as an impediment to abrogate the powerful rally in cyclical bull market, Although, thus far market seems to be resilient and completely ignored it.
I think the impending earning season will elucidate whether market has potential to surge further or not, provided high valuation in some sectors and in few large cap stocks need to ponder.
However, I continue to maintain my bullish view unless I found any technical damage in charts.
Conclusion:
I think patience is pertinent before harboring any view to decide next course of direction to take new positions. However I would like to carry forward my existing long positions with trailing stop loss provided the long term trend is quite intact and strong.
Wish you a Very Happy, Healthy & Profitable New Year..!!
You can write your comment and ask any query below here.
Happy Investing… Be a Savvy Investor..!!
Pankaj